No notes or other aids are allowed, with the exception of calculators. Read all directions carefully and write your answers in the space provided. To receive full credit, you must show all of your work. 1. (20 points) Indicate whether each statement is true or false. Bach statement carries a value of 2 points, and there are a total of 10 statements, resulting in a maximum of 20 points. a. In sole proprietorships, the owner has limited personal liability for the firm's debts. True False b. In limited liability companies, owners are liable for the firm's debts. True False c. In the United States, limited liability companies are subject to double taxation. True False d. Corporations, as legal entities, bear liability for their own obligations. True False e. In corporations, owners are typically not involved in managerial roles. True False f. After an initial public offering (IPO), a corporation's shares continue to be traded on the primary market. True False g. The ask price is the price at which a market maker is willing to buy a security. True False h. The primary role of commercial banks is to help companies raise capital by facilitating the issuance of stocks and bonds on behalf of corporate clients. True False i. Unlike mutual funds which serve investors of all means, hedge funds are primarily designe for wealthy investors and endowments. True False j. Hedge funds are highly regulated funds which are restricted from investing in many ris categories of investments. True False